Dáil Éireann Debate, Wednesday - 26 July 2017
126. Deputy Thomas P. Broughan asked the Minister for Finance the estimated yield to the Exchequer from the introduction of a third rate of income tax at 48%, 49% and 50% respectively on incomes of over €100,000; and if he will make a statement on the matter. [35794/17]
Amharc ar fhreagra133. Deputy Thomas P. Broughan asked the Minister for Finance the estimated amount that would be raised in 2018 if the minimum effective tax rate of persons earning in excess of €300,000 per year increased from 30% to 35%; and if he will make a statement on the matter. [35970/17]
Amharc ar fhreagraI propose to take Questions Nos. 126 and 133 together.
I am advised by Revenue that the yield to the Exchequer from the introduction of a third rate of income tax on incomes over €100,000 is available in the Ready Reckoner which is published by Revenue and available at http://www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf.
In relation to the question about minimum effective tax rates, I assume the Deputy is referring to the high earners restriction which limits the use of certain tax reliefs and exemptions (known as “specified reliefs”) by high-income individuals. A comprehensive analysis of the high earners restriction is published on an annual basis. These reports are available on my Department's website, http://www.finance.gov.ie, and on Revenue’s website at http://www.revenue.ie/en/corporate/information-about-revenue/research/statistical-reports/high-income-earners-reports.aspx. The latest full year for which information is available is 2014 and updates for 2015 will be published in due course.
The Deputy will note from Table 2A on Page 8 of the 2014 Report (http://www.revenue.ie/en/corporate/documents/research/ror-2014-report.pdf), that the average effective rate of income tax, for cases with income in excess of €300,000 per year to which the high earners restriction applies, was already greater than 35%. As the average effective rate already exceeds the higher rate proposed by the Deputy, no additional yield would arise from increasing the rate from 30% to 35%.
